New Survey Findings: A-Level Pupils Vastly Overestimate Student Loan Repayments
New research released today by the University of Greenwich reveals that many A-level pupils are misinformed about university tuition fees, or are unaware of the facts, which could affect important decisions about whether to enter higher education. The University of Greenwich is one of only a handful of universities to set tuition fees below the permitted maximum: £2,560 rather than £3,070.
Independent research from YouGov(1), commissioned by the University of Greenwich, aims to find out what young people planning to go onto higher education really know about university life and helps to bust some myths about top up fees, student loan repayments and graduate earnings.
The main finding is that university hopefuls are too gloomy about how much student loan repayments will cost. On average, they overestimate their repayments after graduation by more than 4,000%. They expect that a graduate earning the relatively low salary of £16,000 will have to repay the significant sum of £70.75 a week. In fact, a graduate earning £16,000 a year would pay back just £1.73 week - £90 a year. Graduates earning the average annual graduate starting salary of £19,000(2) would repay £6.92 a week.
Other myths and misunderstandings revealed by the survey include the finding that one in six students (15%) mistakenly believes that tuition fees have to be paid up-front at the start of each academic year and another 17% don’t know about the payment system at all. In fact, fees can be paid back through student loans once a student graduates, starts working and can afford it.
Many sixth formers are unclear whether, in terms of earning power, it is worth going to university. One in four (27%) does not know that people who go to university earn more than those who go straight into work. In fact, over the course of their life, it’s estimated that a graduate, on average, earns anything between £150,000(3) and £400,000(4) more than those who have not gained a degree.
The research also found that the level of tuition fees is a significant factor for almost one in three students. Twenty nine per cent would be more likely to study at a university that offers tuition fees lower than the permitted maximum, which is £3,070 for courses starting this September. In order to accommodate concerns such as these, the University of Greenwich offers one of the lowest tuition fees in the country, £2,560 for honours degrees, in line with its commitment to offer quality education to people from the broadest range of backgrounds.
“People thinking about going to university are often worried about debt and tuition fees,” says Dr Margaret Noble, Pro Vice-Chancellor of the University of Greenwich. “So, Greenwich has a fee which is lower than most other universities, offering high quality education at an affordable price. Every new student will benefit from paying a fee below the maximum. Our aim is to attract students from a wide range of backgrounds, invest in their education, improve their chances of success and help them into good jobs after graduation. Higher education is a great investment in your future, which leads to better jobs and higher pay.”
Student perception of debt affects the way young people plan for a year off, according to the research. One in four said that they won’t be taking a year off as they think it’s a waste of time. Almost as many (23%) say that they
won’t be taking a year off as they can’t afford it. One in ten plan to work part of the year to fund the rest of the year travelling while a lucky one in 20 says that they will take a full year out funded by their parents.
Other findings include:
* 85% think they will need to get a part time job to make ends meet whilst at university.
* 66% are worried that working whilst at university will impact on their studies and social life.
* One in five intends to stay living at home with their parents when they go to university. Of those:
- 65% said they couldn’t afford to move out
- 51% were worried about getting into more debt
- 19% said that their parents couldn’t afford to support them
- 49% said that they would prefer to live in the comfort of th parental home
To find out more about tuition fees and student grants or to apply for a place at the University of Greenwich call Freephone 0800 005 006, see: www.gre.ac.uk or e-mail: courseinfo@gre.ac.uk
ENDS
For further information and interview requests:
Caron Jones, University of Greenwich Public Relations
020-8331 8248/8937 or 07884 310 970
Notes:
* At the University of Greenwich, full-time mature students who qualify for means-tested government support will qualify for a cash bursary of £500 a year and high achievers entering with 300 or more UCAS points will receive an annual cash scholarship of £500.
* Separate arrangements apply to students on undergraduate honours programmes in partner colleges who will pay a fee of £2,050 with a means-tested cash bursary of £500, regardless of age.
* Students studying for foundation degrees, HNDs and other sub-degree qualifications will pay a reduced fee of £1,535; the bursary scheme will not apply.
* The 2007/8 fee for the four year undergraduate programme in Pharmacy, a joint programme with the University of Kent, will be £3,070, backed by a different bursary scheme.
(1) Research was commissioned by University of Greenwich and carried out by YouGov between 31 July and 9 August 2007. Three hundred and fifty eight 16-18 year olds who are planning to go to university were surveyed.
(2) Higher Education Statistics Agency "Statistical First Release 112: Destinations of Leavers from Higher Education in the United Kingdom for the Academic Year 2005/6"
(3) The Return to a University Education in Great Britain, National Institute Economic Review, (2005), Nigel C. O'Leary and Peter J.Sloane.)
(4) DfES 2001.